GST: Centre, states remove stumbling blocks, but differences still persist

GST: Centre, states remove stumbling blocks, but differences still persist

 India''s ambitious plans to reform the indirect tax regime through a goods and services tax (GST) took a few significant steps forward with the Centre and states agreeing on the details of its structure. GST seeks to replace a multitude of indirect taxes with one, removing barriers to movement of goods and services across state boundaries and turning the country into a single market. 

 
This would improve efficiency, reduce delays and bump up the GDP by 1-2%. The tax, which was to have been rolled out from FY11, is stuck because the Centre has not been able to convince states that they''ll be adequately compensated for revenue they lose as levies imposed are scrapped. 
 
On Wednesday, the empowered committee of state finance ministers decided the threshold for the levy of the tax.
 
It was decided that Rs10 lakh in respect of general category of states and Rs 5 lakh for special category and northeastern states," Jammu and Kashmir finance minister Abdul Rahim Rather, who heads the empowered committee on GST, told reporters after a meeting of the panel on Wednesday. 
 
This means GST will be levied on all retailers and service providers with a turnover of more than Rs 10 lakh in general category states and Rs 5 lakh in special category states. This removes a key stumbling block in the finalisation of the GST structure and is expected to speed up the talks on implementation of the tax reform, though significant differences still persist. 
 
GST will replace service tax, excise, state value-added tax and a number of other local levies. The new government has already signaled its intent to take GST forward and has said it will address all concerns of the states. 
 

Customers Says Excellent experience...Your team did a great job... Best experience I have had in this environment...